cens logo

Likely ASE-and-Siliconware Merger Sparks Concerns Over Monopoly of Taiwanese Market

Feb 02, 2016 | By Ken Liu

Market share surveys have sparked monopoly concerns over the likely merger of IC assemblers Advanced Semiconductor Engineering Inc. (ASE) and Siliconware Precision Industries Co., Ltd. (SPIL).

According to the survey released by the Industrial Economics & Knowledge Center (IEK) of the Taiwan government-backed Industrial Technology Research Institute (ITRI), in 2014 ASE commanded 37.5 percent of the Taiwan market and SPIL 20.6 percent, together controlling as much as 58.1 percent.

A survey by the American consultancy Gartner Inc. shows the two companies having commanded a combined 60.1 percent of the Taiwan market in 2014. Citing ASE's 2014 annual report, the market surveyor points out that the two companies generated combined revenue that accounted for at least 58.9 percent of the global industry.

Industry executives point out that institutional investors usually overlook the significant dominance by the two companies in the global market of contract IC testing and packaging service, in particular the segment for high-end logic IC testing and packaging service.

The two firms together supply over 80 percent of the market for high-end logic IC service to mainly adopt the Cu-pillar and flip-chip chip-scale packaging technologies required by makers of handset, computer and network-connectivity ICs. 

They say the likely merger to result in near monopoly of the market will enable SPIL to present a substantial case before the Cabinet-level Fair Trade Commission (FTC) to deny ASE's full acquisition offer, which SPIL sees as a malicious takeover.

Although PowerTech Technology Inc. (PTI) has become another provider of logic IC packaging and testing service after taking over the Singapore-based Nepes Pte. Ltd., it is still behind ASE and Siliconware technologically, another reality that the FTC will take into consideration when reviewing ASE's acquisition proposal.

ASE announced late last year the offer to buy out SPIL only three days after the Tsinghua Unigroup of mainland China publicized its acquisition of a 24.9 percent ownership and a 25 percent ownership each of SPIL and PTI.

Industry executives say that ASE will fail in its acquisition attempt if the FTC decides not to approve such offer between Feb. 16 and 30 days thereafter.

ASE disagrees with the said survey and says that it and SPIL together command for only 33.6 percent of the local market, with it holding 21.4 percent and SPIL controlling 12.2 percent.

The company's executives contend that both the United States and European Union define market share related to acquisition deals at global level instead of domestic level. For instance, NXP's acquisition of Freescale and Intel's taking over Altera were vetted based on global calculation. They say worldwide ASE and SPIL command only a 15.9 percent market share.

However, Taiwan's Fair Trade Act only considers the market share companies hold in Taiwan in merger deals as long as they are headquartered in Taiwan because it only aims to protect the interest of local industries and consumers.

However the current merger is complicated by ASE's owning manufacturing facilities not only in Taiwan but also in mainland China and six other countries, with some industry executives questioning whether the acquisition should also be approved in the mainland and those countries.

Industry executives point out that when examining acquisition deals, the FTC also looks at whether the companies set prices, not necessarily on their market shares. They say both ASE and SPIL have invested enormously in advanced-technology developments in order to fortify their supremacy in some sectors, in which they actually set prices regardless of supply-demand situations.

Taiwan's Pure IC Assemblers & Their Revenue and Market Share at Home (2013-2014)


2013 Revenue
As a percentage of total (%)
2014 Revenue
As a percentage of total (%)
ASE (not including USI)
PowerTech (including Greatek)
Orient Semiconductor

Source: IEK

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...